nth may be small, but a flurry of pricey leases pushed Manhattan’s median rental prices higher last month.
Thanks to a “quirk” in the luxury market, Manhattan’s median price rose 2.2 percent to $3,475, according to Jonathan Miller, head of appraisal firm Miller Samuel and author of Douglas Elliman’s monthly rental report. That coincided with the number of leases above $15,000 shooting up 95.6 percent year-over-year to 88, Miller said. Leases above $10,000 a month rose 40.7 percent to 197.
According to Miller, those big-ticket deals can be attributed to an influx of investment properties that hit the rental market. “You saw a real uptick in activity because we had a surge in high-end product coming to the market,” he said. (Ironically, prices at the top remained soft, he said.)
Overall, Manhattan’s net effective rent — which takes concessions into account — dropped 0.6 percent to $3,377 last month. More than 25 percent of Manhattan apartments rented last month came with some sort of landlord concession compared to 12.6 percent a year ago, according to the report, which found the average size of concessions was 1.3 months of free rent.
While landlords likely were not too pleased, those concessions had the desired effect: New leases increased 17.1 percent compared to the year prior and the vacancy rate dropped to 1.72 percent — the lowest level in two years.
“Normally, you’ll see that drop off when you get into the peak of the rental season. I haven’t seen it drop off considerably yet,” said Hal Gavzie, Elliman’s executive上海千花社区